AMC PROPOSES FINANCIAL PLAN

CHICAGO TRIBUNE

American Motors Corp. will ask shareholders to approve a deal in which Renault will put up $150 million to help it build a $675 million plant in Canada to build an intermediate-size car for the 1988 model year. AMC, of which Renault owns 46 percent, said the car is ''critical'' to its plan to expand U.S. sales. In a proxy statement mailed for of AMC`s annual meeting April 24, shareholders were told the plan also would provide for a five-year extension, to 1995 from 1990, for Renault to exercise warrants on more AMC stock. Exercise of the warrants by Renault would give it more than 55 percent of AMC`s stock. AMC builds only subcompacts, on which profit margins are low and demand has been depressed.